Major gas station chain with 47,000 locations to shut down 1,000 sites within months as it makes switch to EV

Shell Energy announced plans to swap 1000 gas pumps for public EV chargers by 2025. Getty Images

An energy giant has committed to swapping 500 gas-pumping sites yearly for public EV charging points to meet "growing customer needs."

By 2030, the company projects to grow its 54,000 charging stations to 200,000.

The goal is to meet growing customer needs for EV charging with convenient stores and car washes. Getty Images

Shell Energy, an energy force to be reckoned with in the United States, has one of the largest gas station footprints in the nation.

To meet the growing need for public EV charging stations, however, Yahoo! Finance reported the company's announcement to shut down 1,000 gas pumps and replace them with public EV charging hubs.

"We are upgrading our retail network, with expanded electric vehicle charging and convenience offers, in response to changing customer needs," read the company's 2024 Energy Transition Strategy report.

To do this, 500 sites per year will transition to produce 1,000 stations by 2025.

Most of the efforts will focus on the company's markets for China and Europe, as the industry is more developed and EV demand is higher, though the U.S. will see some changes.

With the initiative, Shell aims to grow its current 54,000 charging points to 200,000 by 2030.

The focus on public charging is due to a severe lack of stations in the U.S., as charging from home is the more attractive option for EV owners.

Shell projects that with time, the need for public charging will increase, and their initiative will have risen to meet it.

In addition, the gas station conversions will offer another advantage to EV customers waiting to charge their vehicles.

"We have other competitive advantages, such as our convenience retail offering which allows us to offer our customers coffee, food, and other convenience items as they charge their cars," the company wrote.

"As we grow our business offering charging or electric vehicles, we expect an internal rate of return of 12% or higher."

Nathan Niese, the associate director of electrification and climate change for the Boston Consulting Groups, told Automotive News that the switch could be wise for the company.

As long as they choose the right locations.

"If you have the right street corners with the right amount of traffic and the right footprint, if you can turn over some of those existing stations that already have a convenience store, that already have a car wash," he said.

"That's a really good cocktail for business success."

*This article originally appeared on The-Sun.com on March 21, 2024.